Published 4:00 am, Friday, May 8, 1998

Kenny "The Gambler" Rogers is among the new players starting Internet casinos.

The state attorney general's office says it wants to make all the new players fold 'em before they hold 'em -- but can't.

Even while a federal bill to crack down on cybergambling winds its way through Congress, several well-financed U.S. operators, including Rogers' venture, are setting up various offshore online casinos to try their hands at gambling.

Backed by millions in venture capital, several major new gaming sites are "going live" this summer with virtual casinos overseas. Most of the operators will not offer their services to Americans.

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Most of the betting parlors say their assortment of online poker games, slot machines and roulette wheels will block U.S. computer users from placing wagers. The companies say they search users' credit card numbers to verify their home addresses.

A spokesman for the California attorney general's office said the offshore operations and exclusion of U.S. bets make it nearly impossible to shut down the companies, even though several have employees in California. "There's not much we can do," he said.

Rogers, whose multiplatinum "The Gambler" album helped make him an international superstar, is a celebrity pitchman for both the site and Barona Casino, an American Indian-owned operation outside of San Diego.

"Kenny thinks the Internet is the wave of the future for entertainment," said Kelly Jacobs, a spokeswoman for Inland Entertainment, Bardanac's San Diego-based marketing arm.

Rogers, who frequently performs in Las Vegas, Atlantic City and other gambling hot spots, could not be reached for comment.

-- Galaxiworld. Gaming Lottery in the British Virgin Islands will launch the world's largest online casino, Galaxiworld (www.galaxiworld.com), this month . The $20 million project will offer more than 50 games and be able to handle millions of hits a day.

But the doors to this stylish site aren't open to Americans until online gambling is regulated, he said.

"We expect the United States to follow suit (offering legal online gambling) in a couple of years," Weltman said. "We want to have operations in place when that happens."

-- NetCasino. Santa Ana-based World Wide Web Casinos raised $15 million to launch virtual casino www.netcasino.com this year in South Africa. Unlike the other new overseas ventures, it accepts bets from 42 states, including California.

"We don't think this is against the law," said CEO Peter Michaels. "We're seeking regulation, not prohibition of gambling. Look what good the last Prohibition did."

-- Virtual Vegas. David Herschman, CEO of Virtual Vegas (www.virtualvegas.com) in San Francisco, is toying with the idea of offering casino games on his Web site to non-U.S. citizens. It currently features a game-show format that rewards consumers with cash and prizes.

PlayStar officials said they are eager to tap into the lucrative U.S. market but initially will accept bets only from overseas players. "America isn't the only country in the gambling market, but it is the biggest," said Mike Elek, director of business development for PlayStar.

The U.S. does not have a law specifically prohibiting online gambling. However, federal and state authorities say Internet gambling is illegal under a 1961 federal law that bars interstate gambling over telephone wires.

A bill now before Congress would specifically ban all forms of virtual betting. However, the bill faces stiff opposition from cybergambling interests, American Indians, civil libertarians and conservative groups.

Proposed by Senator Jon Kyl, R-Ariz., it would prohibit Internet service providers from hosting online casinos on their systems and establish fines of up to $2,500 and jail terms of up to six months for individuals who gamble online.

Kyl's office, which has made minor concessions to the legislation, is attempting to rush the measure through the Senate.

At the same time, federal authorities are using the 1961 law in attempts to put a lid on wagers over the Internet.

In March, the U.S. Justice Department filed criminal complaints against 21 Americans -- including two San Francisco men who co-founded the World Sports Exchange in Antigua -- for allegedly using the Internet to accept wagers on sporting events. If convicted of the felony charges, Steve Schillinger and Jay Cohen each could face up to five years in prison and a $250,000 fine.

Schillinger is currently a fugitive in Antigua. Cohen surrendered to the FBI last month.

Despite the gambling probe, virtual casino operators are undaunted -- even ebullient -- about the booming $1 billion market worldwide. During the past year, the number of gaming sites has zoomed from zero to more than 60, according to Sebastian Sinclair, an analyst with Christiansen Cummings Associates, a New York gambling consulting firm.